If Reserve Clauses Were Outlawed in Major-League Baseball

question 36

Multiple Choice

If reserve clauses were outlawed in major-league baseball,

• A) major league teams would have less incentive to train minor league players.
• B) minor league players would be paid more.
• C) players in the major leagues would be paid less than their marginal product.
• D) players in the major leagues would be paid more than their marginal product.

---

Definitions:

End of Budget Period

The conclusion of a specified time frame for which a budget was prepared, marking an opportunity to review budgetary performance against actual financial activity.

Sales Budget

A forecast of a company's sales revenue for a specific period of time.

Prepared First

A term that is not specifically defined in business or finance, potentially referring to procedures or documents that must be prioritized or completed initially in a process.

Budget Process

The process by which an organization or individual creates and manages a plan for its financial resources and expenditures.